One of Mark Carney’s first jobs as Governor of the Bank of England is likely
to be writing to the Chancellor to explain why inflation is above target.

Adding to the Canadian central banker’s long list of impending tasks when he
enters Threadneedle Street, a rise in inflation in May led economists to
speculate that it could rise above 3 per cent as early as this month.

This will force Mr Carney, who takes over from Sir Mervyn King next month, to
write to George Osborne detailing the reasons why inflation is more than one
percentage point above its official